From the Desk of Jan Burman: The Changing Landscape of Real Estate Investment
Advice for the Next Generation
The real estate industry has undergone dramatic changes over the past several decades, fundamentally altering how new professionals can enter and succeed in the field. B2K Development Chairman Jan Burman, who has witnessed this evolution firsthand, offers candid insights about the challenges facing today’s aspiring real estate professionals.
How Financing Has Transformed the Industry
“When I started in the industrial business, if you paid a million dollars for a building, they’d loan you $1,000,000 and $50,000 because it covered your closing costs,” Jan recalls. “And it was based upon if they thought you were going to repay them, they gave you the loan.”
This financing environment allowed entrepreneurs to enter real estate without significant personal wealth, as lenders focused primarily on the borrower’s character and repayment capability rather than requiring substantial down payments. The accessibility of leverage meant that smart, hardworking individuals could build substantial portfolios even without extensive capital.
Today’s Capital-Intensive Reality
The modern real estate landscape presents different challenges. “In today’s world, you’re lucky to get a 60 or 65% mortgage,” Jan explains. “So someone young has to get a job in a place where they think they can learn a lot and bring value, and be able to bring deals in.”
This shift toward higher down payment requirements has made real estate more capital-intensive, creating barriers for newcomers. Combined with significantly higher property values – “where deals used to be not expensive, everything is a fortune” – entering the industry now requires different strategies than previous generations employed.
Building Value Before Seeking Capital
For aspiring real estate professionals, Jan’s advice centers on demonstrating value before seeking backing. Young professionals must position themselves strategically, working for organizations where they can “learn a lot and bring value, and be able to bring deals in.”
The path forward involves building a track record of successful transactions and relationships, then approaching potential investors with concrete evidence of capability. “That’s their opportunity,” Jan notes. “But it’s not easy to break into our business today, because it’s very capital intensive.”
Strategic Career Development
Success in today’s real estate environment requires young professionals to think strategically about their career development. This means choosing employers and positions that provide exposure to deal flow, client relationships, and market knowledge while building a reputation for reliability and results.
The goal is creating a compelling narrative for potential investors: “Look, I’ve done this, this, and this – will you back me?” This approach requires patience, as building credibility takes time, but it remains the most viable path for entering the industry without personal wealth.
Excellence as a Differentiator
Jan acknowledges the difficulty of breaking into modern real estate but notes one important exception: “It’s very hard to break into the real estate business today, unless you’re brilliant.” Exceptional talent can still create opportunities, even in a capital-intensive environment.
This underscores the importance of continuous learning, market knowledge, and developing expertise that sets one apart from peers. In an industry where capital is king, intelligence and innovation become crucial differentiators.
Mentorship and Long-Term Thinking
The evolution of real estate financing highlights the importance of mentorship and long-term career planning. Experienced professionals like Jan understand both the challenges and opportunities facing newcomers, making their guidance valuable for navigating today’s complex landscape.
For established professionals, sharing knowledge and creating pathways for talented newcomers helps ensure the industry continues to attract capable leaders while maintaining the entrepreneurial spirit that drives innovation and growth.